Sweden’s GDP sees decline of 0.1 percent in Q3 2024

(MENAFN) Preliminary results released by Statistics Sweden indicate that the country's gross domestic product (GDP) experienced a decline of 0.1 percent in the third quarter of the year. This downturn follows two consecutive quarters of economic contraction, officially placing Sweden in a technical recession, as the economy has not managed to recover from the shrinking experienced in those earlier periods.

The latest decline comes after a more significant drop of 0.3 percent in the previous quarter, and it starkly contrasts with forecasts that had predicted a 0.4 percent growth for the third quarter. The persistent negative growth reflects ongoing challenges facing the Swedish economy, prompting concerns about its overall health and resilience in the current economic climate.

Economist Melker Pettersson Loberg from Statistics Sweden explained that the GDP decrease in September, combined with underperformance in July, was primarily responsible for the negative growth observed for the entire third quarter. This consistent downward trend highlights the difficulties the country is encountering as it navigates through various economic pressures.

On a month-to-month basis, the GDP saw a notable decline of 0.4 percent in September, which followed a more robust increase of 1.1 percent in August. This fluctuation underscores the volatility in Sweden's economic performance and raises questions about the factors contributing to this downturn, as well as the potential implications for future economic policy and growth strategies.

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